Strong financial governance, oversight remain critical despite landmark KZN equitable share increase

Issued by Tim Brauteseth, MPL – DA KZN Spokesperson on Finance
25 Jul 2025 in Press Statements

(The following General Budget Debate was delivered during a Sitting of the KZN Legislature today)

While pressure relating to KZN’s fiscal landscape has eased somewhat during the past year, the situation remains dire and the Government of Provincial Unity (GPU) – of which the Democratic Alliance (DA) is a solid partner – must continue to be obsessive about strong financial governance, particularly where budgets remain tight.

Through the excellent work of both KZN’s Finance and SCOPA portfolio committees, many areas of concern have been identified. Finance has identified the following, amongst many, which now demand urgent attention;

• The Zulu Royal Household Trust (ZRHT) must urgently appoint a board and finalise its commercialisation plans

• KZN’s Department of Education (DoE) – which is facing severe Compensation of Employee (COE) challenges – must urgently conduct a staff verification exercise to contain costs and rein in unauthorised expenditure of more than R1billion

• The province’s Department of Community Safety and Liaison must urgently conduct an assessment of its structures, many of which have been non-functional for over five years

• The Department of Sport, Arts & Culture must urgently fill its vacant yet funded posts and;

• KZN’s Department of Health (DoH) must swiftly address the urgent need for digitisation of patient records to mitigate against medico – legal claims and commit to controlling irregular, unauthorised, fruitless and wasteful expenditure and pursuing effective consequence management.

Despite these challenges, credit must be given where it is due.

The DA welcomes the fact that the Provincial Equitable Share increases over the MTEF by R1.735bn, R2.348bn and R3.109bn. This is a ground-breaking milestone – for the first time in 10 years, the equitable share has favoured KZN.

More good news for the people of KZN is that 79.9% of the current provincial budget of R158.4 billion has been allocated to the frontline service delivery departments of Health, Education and Social Development. This is indicative of a pro-poor budget.

It is now critical that the use of these funds is closely monitored. Provincial government department accounting officers, together with senior management, should regularly monitor the effectiveness of preventative measures to improve the overall control environment. KZN’s provincial legislature must also exercise effective oversight and hold the executive accountable for underperformance and non-compliance.

In this regard, the DA welcomes the introduction of KZN’s eProcurement system and departmental dashboards by Provincial Treasury – a move which will greatly improve the effectiveness of the legislature’s oversight function. These joint efforts will contribute significantly to the province fulfilling its mandate and improving the quality of life of its people.

Just over a year ago, KZN’s electorate placed the solemn responsibility of governance on KZN’s Government of Provincial Unity (GPU). As a member of the GPU, the DA has welcomed its partners, who are steeped in the traditions of good governance, and the expertise available.

The GPU has also shown that it is willing to take decisive action against offenders and to cut costs when necessary. Under Finance MEC, Francois Rodgers, Treasury cut KZN’s budget deficit from a staggering R9billion in 2024 to R348million in 2025. A perfect example of what can be achieved through strong political will!

The DA is confident that with this budget and a firm commitment to good governance, KZN’s GPU can take bold steps into the future and achieve the prosperity and dignity that its citizens deserve. We will continue to fight for this and we will not step back. We are resolute.